Natural Disasters and BAPCPA

The consequences of a natural disaster can be devastating; the harm suffered by innocent victims can be physical, emotional, and financial. When the Bankruptcy Abuse Prevention and Consumer Protection Act was passed, it made no accommodations for victims of natural disasters who needed to file for bankruptcy. After the consequences of Hurricane Katrina made it clear that BAPCPA regulations needed to be modified, emergency measures were adopted to help suffering victims.

Now, there are guidelines established by the US Trustee’s office to alleviate bankruptcy under catastrophic conditions. If you are thinking about filing for bankruptcy, knowing the law is an important first step. Contact the Birmingham bankruptcy lawyers of [firm-name] today at [phone-number] to learn more.

Changes to BAPCPA

If a disaster impairs a debtor’s ability to pursue bankruptcy, BAPCPA regulations may be loosened to provide much needed financial stability. In extreme circumstances, the US Trustee’s office has authorized the following changes:

  • Lost documents are not blamed on the debtor
  • The means test is modified to account for disaster-related damages
  • Credit counseling is not necessary
  • The US Trustee’s office may set up communication between creditors and debtors when communication might otherwise be impossible

As the Trustee’s office is responsible for the execution of bankruptcy law, these additions to BAPCPA are generally considered applicable in court. However, these changes are not law. Judges are allowed to suspend these guidelines and apply the original BAPCPA regulations if they deem that decision prudent.

Contact Us

If you are considering filing for bankruptcy, contact the Birmingham bankruptcy attorneys of [firm-name] at [phone-number] to discuss your future with a legal professional today.

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